Day: 5 May 2017

CTAs Still in Negative Territory for the Year

Although CTA performance improved relative to the previous month, all Societe Generale (SG) Managed Futures indices fell just short of breaking through into positive territory at the end of April 2017.

Trend-following had another challenging month in April. The SG Trend Index was down -1.03%, and with 80% of constituent CTA trend strategies contributing negative performance, it underperformed the other CTA indices.

It was a mixed result for the broader SG CTA Index, with eight out of the 20 constituent strategies contributing positive performance, and the index remains flat for year.

Hotspot Begins Offering Anonymous Deliverable FX Forwards

Hotspot has revealed that the first anonymous outright deliverable forward FX transaction has been executed on its platform.
Hotspot says that is the first platform to provide outright deliverable forwards on an anonymous central-limit order book, and that it is also the first platform to allow prime brokerage clients to post passive quotes.
This is designed to allow for expanded trading activity from market participants, who will be able to trade without being forced to cross the bid-offer spread.
Paul Millward, head of product strategy, and Paul Reidy head of technology, spearheaded the project, which culminated in a one-month EUR/USD trade, of $100,000 notional value.

FX Volatility Highlighting Under-Served Market Segment

A more volatile trading environment is exposing a segment of businesses that are currently being under-served by FX service providers, claims Moises Michan, a managing partner at Tanridge Capital.

“I think that when you start looking into these higher volatility environments is when you start having treasurers and heads of family offices realising that they’re not FX experts, there’s a lot of mechanics a lot of input going into the FX market, and they do have exposures,” he says.
Michan says that Tanridge capital is focusing its efforts on providing FX asset management services for small to medium sized institutions that don’t meet the client requirements of the big banks.